Buoyed by a steady growth in its loan portfolio and deposits, HDFC Bank reported robust financials for the fourth quarter of FY16 and the full fiscal.
The bank’s quarterly net profit grew 20 per cent year-on-year (y-o-y) to ₹3,374 crore. Net interest income (excess of interest earned over interest paid) grew 24 per cent to ₹7,453 crore.
The bank’s board recommended a dividend of ₹9.5 per share of face value ₹2 each.
Other income (that is, non-interest income) grew 12 per cent to ₹2,866 crore constituting 28 per cent of net revenue for the quarter.
This included recovery of ₹295 crore.
Operating expenses for the fourth quarter stood at ₹4,584 crore, up 19 per cent y-o-y with cost-to-income ratio (cost incurred to generate income) at 44.4 per cent, down 0.5 percentage points.
Full-year performance For the full fiscal (FY16), the bank repeated the performance clocking 20 per cent y-o-y growth in net profit to ₹12,296 crore.
Net revenue (net interest income plus other income) in FY16 stood at ₹38,343.2 crore, up 22 per cent.
The cost-to-income ratio dipped 0.3 percentage points to 44.3 per cent, while the net interest margin (NIM) stood at 4.3 per cent.
New milestone The bank’s balance sheet crossed the ₹7 lakh-crore mark in FY16, up 20 per cent y-o-y, to ₹7.09 lakh crore.
Its deposit base grew 21 per cent ₹5,46,424 crore with low-cost CASA (current account and savings account) deposits constituting 43 per cent.
Current account deposits grew 20 per cent to ₹88,425 crore while savings account deposits increased 18 per cent to ₹1,47,886 crore. The bank’s loan book rose 27 per cent to ₹4,64,594 crore with the ratio of retail to wholesale loans at 49:51.
Bad loans as a percentage of the gross loan portfolio (gross NPA) stood at 0.94 per cent (up one basis point) and net NPA came in at 0.3 per cent.
Restructured loans constituted 0.1 per cent of gross advances in FY16, the same as in FY15.
Capital adequacy Capital set aside by the bank to absorb risk emanating from potential default under Basel-III norms stood at 15.5 per cent in FY16, down 130 basis points y-o-y but higher than the regulatory requirement of 9 per cent.
The bank added 506 branches and 244 ATMs during FY16 taking its tally to 4,520 branches and 12,000 ATMs across 2,587 cities and towns.
The number of employees stood at 87,555 in FY16, up from 76,286 in FY15. As a result, employee cost rose 20 per cent to ₹5,702 crore.